24 215 chrystie street hotel questionnaire by The Lo-Down

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Ian Schrager is currently licensed in connection with the following license: GPH Management LLC dba Gramercy Park Hotel 2 Lexington Avenue New York, NY 10010 Serial #1180254 2007 to present

Ian Schrager has previously had an interest in the following licensees: GPH Partners LLC 2 Lexington Avenue New York, New York Serial #1153098

Madison Bar Company LLC 237 Madison Avenue New York, New York Serial #1025839

Greenberg/GPH Partners LLC 2 Lexington Avenue New York, New York Serial #1145914

Morgans Holdings LLC 237-239 Madison Avenue New York, New York Serial #1023311

BP Bar Company LLC 235 West 46th Street New York, New York Serial #1123036

SC Madison LLC 237 Madison Avenue New York, New York Serial #1106115

Century Paramount LLC 235 West 46th Street New York, New York Serial #1023459

Ian Schrager Hotel Management LLC 237-239 Madison Avenue New York, New York (Morgans) License issued and surrendered

SC 46th Street LLC 235 West 46th Street New York, New York Serial #1110257

237 Restaurant Corp. 237 Madison Avenue New York, New York License issued and surrendered

Century Paramount Associates 235-245 West 46 th Street New York, New York License issued and surrendered

Hudson Leaseco LLC 353-361 W 57th Street New York, New York Serial #1110264

Paramount Lease Co LLC 235 West 46 Street New York, New York License issued and surrendered

SC 58th Street LLC 353-361 W 57th Street New York, New York Serial #1110074

!$%'("&#)% To: From: Date: Re:

Christina Zimmer, Zimmer , Ian Schrager Company Daniel Schack, AICP, PTP February 11, 11, 2016 2016 215 Chrystie Traffic Study

1. Introduction On behalf of Ian Schrager Company (ISC), Sam Schwartz Engineering (SSE) has performed a traffic assessment of the hotel development located at 215 Chrystie Street in Manhattanâ&#x20AC;&#x2122;s Lower East Side, New York, NY. NY . The proposed 2828 -story building building will have 367 hotel h otel rooms, 11 condo condo units, a restaurant, a casual eatery/marketplace, 4 bars, bars, an event space on the 16th floor floor,, and another below grade. grade. The hotel, residences, and below grade event space each have h ave separate entrances entrance s on Chrystie Street. The development will also has an offoff-street loading dock on the south side of the building that will be accessed via a private parking lot at 10 Stanton Street. Street . The entrance to the parking lot is on Chrystie Street just south of the development and is controlled by a gate that is set back from fr om the curb, allowing vehicles to queue without significantly blocking the sidewalk. To assess the potential impact of the projectproject -generated vehicles on the surrounding roadway network and parking supply, supply , SSE performed field observations of current traffic conditions and pedestrian activity in October 2015 during the evening , when the project activity would peak . An inventory of public parking facilities within 0.25 0.25--mile of the site was conducted to measure measu re offoffstreet parking availability in the area. area . Automatic traffic recorders (ATRs) were also used over a 12-day period from Monday, October 1 to Monday, October 12, 2015 to record continuous vehicular traffic volumes on Chrystie Street, Street , between East Houston Houston and Stanton Streets Streets.. Traffic volumes expected to be generated by the project were then estimated to assess what potential effect they could have on the local transportation infrastructure . This memorandum summarizes these findings. 2. Project Location The project project site is located at 215 Chrystie Street , between East East Houston Street and Stanton Street, in Manhattanâ&#x20AC;&#x2122;s Lower East Side, acr across oss from Sara D. Roosevelt Park (Figure ( Figure 1) 1).

215 Chrystie Traffic Study February 11, 2016

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Figure 1: Project location

Chrystie Street runs from Canal Street, at the base of the Manhattan Bridge, for seven blocks to East Houston Street. The street serves as an important connection for motorists and bicyclists to and from the Manhattan Bridge. It is a two-way, north-south roadway and under normal conditions has two southbound travel lanes, one northbound travel lane, curbside parking on both sides of the street, and bicycle lanes on both sides of the street. At Houston Street, northbound Chrystie Street widens to two lanes (a left-turn lane and a through lane). However, there is currently significant utility and roadway reconstruction work along East Houston Street, which has constrained the intersection at Chrystie Street to one lane in each direction. This has caused the removal of curbside parking near the intersection, the loss of the left-turn lane for northbound traffic, and the loss of the marked bicycle lanes. The southbound M15 bus, which normally turns left from Second Avenue onto East Houston Street, has been rerouted down Chrystie Street and a temporary bus stop has been located just south of East Houston Street (Figure 2).

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Figure 2: Rerouting of the southbound M15 bus due to roadway construction on East Houston Street

Source: Metropolitan Transportation Authority

In addition to the changes due to the roadway construction, t he west curb lane between East Houston and Stanton Streets has been turned into a truck loading zone for the construction of 215 Chrystie Street. These temporary changes to the roadway configuration due to the construction projects have made traffic queueing at Chrystie and E ast Houston Streets particularly acute, however, it is anticipated that the street will be restored to pre -construction conditions when the utility an and roadway work is complete. According to the community construction liaison for the East Houston Street construction project, work will be approximately 80% complete by the spring of 2016 and completed by the fall. Once complete, and the street and bus route are fully restored, it is expected that traffic will flow more smoothly on East Houston and Chrystie Streets. Local transit access is provided via four nearby subway stations and three bus lines. The 2nd Avenue Station (F train) is at the corner of East Houston Street and Chrystie Street, the Bowery Station (J and Z trains) is three blocks to the south on Delancey Street, the Broadway -Lafayette and Bleecker Street Station complex (B, D, F, M, and 6 trains) is five blocks to the west, and the Prince Street Station (N and R trains) is seven blocks to the west . The M21 bus provides crosstown service on Houston Street, the M103 bus is available on Bowery and runs from City Hall to East Harlem, and the M15 local bus and Select Bus Service is available on Chrystie Street and Allen Streets and runs from the Battery to East Harlem (southbound M15 bus service has been rerouted to Chrystie Street for the duration of the roadway construction and will move back to its regular route on Allen Street after construction) . New York City Department of Transportation (DOT) has tentative plans to convert the bicycle lanes on Chrystie Street from typical on-street lanes to a separated bicycle path on the east side of the street (Figure 3). Community Board 3 voted unanimously in February 2015 to ask DOT to study the issue. If this were to happen, the bike lane in front of the project site would be moved to the east side of the street, reducing the potential conflict between bicyclists and people arriving to the site in taxis and private vehicles.

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Figure 3: Chrystie Street may be redesigned with a two-way, separated bicycle path on the east side of the street (the figure shows a typical cross section south of Rivington Street)

Source: Transportation Alternatives

3. Traffic Counts SSE conducted qualitative observations of traffic conditions during evening hours when the project-generated activity would be at its peak (projected to be 7:00 p.m. to 8:00 p.m., when people arriving for an event would coincide with bar and restaurant activity). Generally, Chrystie Street was observed to operate with free flow traffic except when the M15 bus was picking-up and dropping-off passengers, blocking the intersection at East Houston Street; however, this was due to the constrained construction condition and it is not likely that this issue would persist after the street construction is completed. Overall, vehicle and pedestrian traffic on Chrystie Street adjacent to the project site operates without any significant delay or congestion during the evening peak period. In addition to qualitative observations, vehicle counts were collected on Chrystie Street adjacent to the project site from Monday, October 1 to Monday, October 12, 2015, using ATRs. Hourly traffic data for each hour of the day on Chrystie Street are shown in Figure 4.

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Figure 4: Hourly two-way traffic volumes on Chrystie Street (Monday, October 1 to Monday, October 12, 2015)

Based on the data collected, Chrystie Street vehicle traffic peaks in the late afternoon/early evening period during weekdays and Fridays and peaked early morning (1:00 a.m. to 2:00 a.m.) on Saturday, with a maximum of 720 vehicles per hour two-way (which occurred on a Friday evening). During the projected ed peak period of the event space, restaurant, and bar activity (7:00 p.m. to 11:00 p.m.), the data shows that Chrystie Street has vehicle volumes below this peak, with an average of ~625 vehicles per hour. This, and our qualitative observations of traffic flow, indicates that there is roadway capacity available to process the vehicles generated by the event space, restaurant, and bar during their peak period of activity. 4. Trip Generation Peak hour vehicle trips expected to be generated by the project were estimated by SSE. For the purpose of this analysis, the peak hour assumes a full hotel, normal activity at the restaurant and bars, and events happening simultaneously in both event spaces. The trip generation assumptions for the project are summarized in Table 1.

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Table 1: Trip generation factors Land Use: Size Unit

Program Size

Daily Person Trip Generation

Modal Split

Weekday Saturday Unit

Auto Taxi Subway Bus Walk/Bike/Other

Vehicle Occupancy

Auto Taxi

Linked Trips (2) Temporal Distribution

Directional Distribution

Weekday Evening Saturday Evening

Residential

Hotel

Restaurant and Market

Bars

Event Space

11 367 153 338 470 dwelling unit rooms seats seats person (1) (1) (5) (5) (2) 8.075 9.40 20 2 9.600 9.40 20 20 2 per dwelling unit per room per seat per seat per person Weekday Saturday Weekday Saturday Weekday Saturday Weekday Saturday Weekday Saturday (7) (6) (5) (5) (5) 3.1% 3.1% 9.0% 9.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 6.1% 6.1% 18.0% 18.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 56.2% 56.2% 24.0% 24.0% 27.0% 27.0% 27.0% 27.0% 27.0% 27.0% 2.0% 2.0% 3.0% 3.0% 17.0% 17.0% 17.0% 17.0% 17.0% 17.0% 32.6% 32.6% 46.0% 46.0% 41.0% 41.0% 41.0% 41.0% 41.0% 41.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% (4) (6) (2) (2) (2) 1.22 1.22 1.40 1.40 2.00 2.00 2.00 2.00 2.00 2.00 1.40 1.40 1.80 1.80 2.00 2.00 2.00 2.00 2.00 2.00 0% 0% 0% 0% 50% 50% 50% 50% 15% 15% (1) (1) (3) (3) (2) 11.0% 13.0% 7.7% 7.7% 45.0% 8.0% 9.0% 10.3% 10.3% 45.0% In Out In Out In Out In Out In Out (4) (3) (2) (2) (2) 65.0% 35.0% 65.0% 35.0% 75.0% 25.0% 75.0% 25.0% 100.0% 0.0% 56.0% 44.0% 65.0% 35.0% 50.0% 50.0% 50.0% 50.0% 100.0% 0.0%

Notes (1) Based on CEQR Technical Manual (2014) (2) Sam Schwartz Engineering assumptions (3) Brooklyn Bridge Park FEIS (2005), Table 14-6. Event Space vehicle occupancy based on restaurant land use. (4) 520 Broome Street EAS (2005) Tables 5 and 6 (5) Osteria Morini Traffic Review, 218 Lafayette Street, New York, NY, patron survey (2012) (6) Hudson Square Rezoning FEIS (2013) (7) US Census, 2009-2013 American Community Survey 5-Year Estimates

The assumptions in Table 1 were used to project the number of peak hour vehicles droppingoff/picking-up at the project site, as summarized in Table 2. Table 2: Projected peak hour vehicles generated by the site

Weekday Evening

Saturday Evening

Auto Taxi Total Auto Taxi Total

Residential 0 0 0 0 0 0

Hotel 29 37 66 20 26 46

Restaurant and Market 0 8 8 0 9 9

Bars 0 18 18 0 20 20

Event Space 0 27 27 0 27 27

Total 29 90 119 20 82 102

Over 80% of people arriving and leaving the site during the peak hour are projected to be walking, biking, or taking transit, with the remainder arriving via vehicles (auto or taxi). A combined total of 119 vehicles are projected to arrive and depart from the project site during the weekday evening peak hour and a total of 102 vehicles are projected during the Saturday evening peak hour (between 7:00 p.m. and 8:00 p.m.). The majority of these vehicles are projected to be taxis. When the projectâ&#x20AC;&#x2122;s peak vehicle generation (119) is added to the volume during the Friday evening peak hour (685), there would only be a 17% increase in overall traffic volume on the roadway. This volume of additional traffic would not likely have a significant effect on traffic operations on Chrystie Street and would represent only a small (12%) increase in traffic over the current daily maximum volume on the roadway of 720 vehicles.

215 Chrystie Traffic Study February 11, 2016

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5. Parking Generation and Capacity To estimate the parking demand associated with the development, an hourly parking accumulation analysis was prepared for a weekday and a Saturday. The parking generation assumptions that were used are summarized in Table 3. Table 3: Parking Generation Assumptions =FPQROBLQ BLE 6MROKFQ >KYG @OKT <GRSPO ?RKQ =CTG 0UTP >JCRG AGJKEMG ;EEUQCOEX 7KOLGF ?RKQS 3BHJU 0RQM ?OHNP 9PTGS/

=FPHEFLQHBJ& && FWGMMKOI UOKT BGGLFCX >CTURFCX -$%,* .$+ (! (! &$'' &$'' %! %! ' (

7MQFJ' RPPNS BGGLFCX >CTURFCX .$)% .$)% .! .! &$)% &$)% %! %! ''' '''

9BOIFQ( &*( SGCTS BGGLFCX >CTURFCX '% '% %! %! '$%% '$%% *%! *%! % %

1BO( ((SGCTS BGGLFCX >CTURFCX '% '% %! %! '$%% '$%% *%! *%! % %

4SFLQ >NBDF) ),% IUGSTS BGGLFCX >CTURFCX ' ' %! %! '$%% '$%% &*! &*! % %

(1) Daily trip rate based on CEQR Technical Manual (2014); auto share based on US Census, 2009-2013 American Community Survey 5-Year Estimates; vehicle occupancy based on 520 Broome Street EAS (2005) Tables 5 and 6 (2) Daily trip rate based on CEQR Technical Manual (2014); auto share and vehicle occupancy based on Hudson Square Rezoning FEIS (2013) (3) Daily trip rate and auto share are based on the Osteria Morini Traffic Review patron survey (2012); vehicle occupancy based on SSE assumptions (4) Daily trip rate and vehicle occupancy rate based SSE assumptions; auto share based Osteria Morini Traffic Review patron survey (2012)

These assumption were used to project the hourly parking demand accumulation for weekdays and Saturdays, which are summarized in Table 4 and Table 5, respectively.

215 Chrystie Traffic Study February 11, 2016

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Table 4: Projected weekday hourly parking demand, with peak highlighted =FPQROBLQ BLE (

7MRO &'$& 09 &$' 09 '$( 09 ($) 09 )$* 09 *$+ 09 +$, 09 ,$- 09 -$. 09 .$&% 09 &%$&& 09 &&$&' <9 &'$& <9 &$' <9 '$( <9 ($) <9 )$* <9 *$+ <9 +$, <9 ,$- <9 -$. <9 .$&% <9 &%$&& <9 &&$&' <9 ;MQFP/

(

=FPHEFLQHBJ 7MQFJ 9BOIFQ& 1BO& 4SFLQ >NBDF' 0DDRKRJBQHML 0DDRKRJBQHML 0DDRKRJBQHML 0DDRKRJBQHML 0DDRKRJBQHML % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % ( % % % % . % % % % &' % % % % &* % % % % &+ % % % % &+ % % % % &( % % % % &* % % % % &+ % % % % &, % % % % &* % % % % , % % % % ) % % % % & % % % % % % % % % % % % % % % % % % % % % % %

1. Temporal distribution based on Brooklyn Bridge Park FEIS (2005), Table 14-15. 2. Temporal distribution based on St. George Waterfront Redevelopment FEIS (2013) Table 14-47. 3. Temporal distribution based on Hudson Yards Redevelopment FEIS (2003) Table 3.

?MQBJ 0 0 0 0 0 0 3 8 12 15 16 16 13 14 16 17 15 7 4 1 0 0 0 0

215 Chrystie Traffic Study February 11, 2016

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Table 5: Projected Saturday hourly parking demand, with peak highlighted =FPQROBLQ BLE 7MRO &'$& 09 &$' 09 '$( 09 ($) 09 )$* 09 *$+ 09 +$, 09 ,$- 09 -$. 09 .$&% 09 &%$&& 09 &&$&' <9 &'$& <9 &$' <9 '$( <9 ($) <9 )$* <9 *$+ <9 +$, <9 ,$- <9 -$. <9 .$&% <9 &%$&& <9 &&$&' <9 ;MQFP/

=FPHEFLQHBJ( 7MQFJ( 9BOIFQ& 1BO& 4SFLQ >NBDF' 0DDRKRJBQHML 0DDRKRJBQHML 0DDRKRJBQHML 0DDRKRJBQHML 0DDRKRJBQHML % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % ( % % % % . % % % % &' % % % % &* % % % % &+ % % % % &+ % % % % &( % % % % &* % % % % &+ % % % % &, % % % % &* % % % % , % % % % ) % % % % & % % % % % % % % % % % % % % % % % % % % % % %

?MQBJ 0 0 0 0 0 0 3 8 12 15 16 16 13 14 16 17 15 7 4 1 0 0 0 0

As shown, the peak parking demand for both weekdays and Saturdays expected to be generated by the project is 17 vehicles from 3:00 p.m. to 4:00 p.m. To understand how this would impact the local off-street parking supply, an inventory of publically accessible parking garages and utilization was conducted. The resulted of the off-street parking survey is shown in Table 6. Table 6: Inventory of public off-street parking (0.25-mile radius from the site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

In total, there are five, 24-hour parking garages within a 0.25-mile radius (5-minute walk) of the project site; these garages provide a total of 568 parking spaces in the study area. For each, the licensed capacity was recorded and the typical utilization was estimated based on interviews with the operator. In total, 174 and 193 off-street parking spaces were estimated to be available during

215 Chrystie Traffic Study February 11, 2016

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the weekday evening and Saturday evening peak periods, respectively. This is more than sufficient to accommodate the parking demand generated by the project site, where most visitors are expected to arrive on foot or via taxi. 6. Conclusion From 7:00 p.m. to 8:00 p.m., when project-generated traffic related to the bars, restaurant, and event space would peak, Chrystie Street was found to have a two-way volume of 633 vehicles on weekdays, 685 on Fridays, and 601 on Saturdays. On a Friday evening (the period of highest background traffic), the proposed project is expected to add up to 119 vehicles to Chrystie Street, bringing the total to 804 vehicles/hour. This would represent only a 17% increase in traffic volume and only a 12% increase in volume over the current peak the roadway experiences (720 vehicles/hour between 6:00 p.m. and 7:00 p.m.). Based on qualitative observations, Chrystie Street currently has enough roadway capacity to accommodate this increase in traffic volume and it is not expected to substantially affect background traffic or vehicle delay in the area. Furthermore, traffic flow on Chrystie Street would likely improve after the utility and roadway construction on East Houston Street is completed next year. In addition, delivery vehicles will be accommodated by an off-street loading area on the south side of the building that will be accessed via a parking lot. It is projected that the hotel and residential components of the project would generate demand for 17 parking spaces at their peak, expected to occur between 3:00 p.m. and 4 p.m. This demand could be accommodated by the five publically accessible parking garages that are within 0.25miles of the project site that have a combined availability of over 150 spaces. Overall, it is not expected that the proposed project would have any significant effect on either traffic operations or parking supply in the area. However, due to the projected taxi volumes generated by the project, it is recommended that a curbside hotel loading zone be implemented along the west curb of Chrystie Street. This would help to accommodate vehicles picking-up and dropping-off guests and would help to avoid this activity impeding on southbound Chrystie Street traffic.

February 22, 2016 Mr. Michael Overington Ms. Sabrina Gleizer Ian Schrager Company 818 Greenwich Street New York, New York 10014

RE:

Chrystie Street Hotel 215 Chrystie Street, New York, New York

Dear Mr. Overington/ Ms. Gleizer, After meeting with you and visiting the Chrystie Street Hotel as well as reviewing the general operations and floor plans of the various entrances / exits to the facility and the individual restaurant/bar/meeting and event spaces, I have prepared the following preliminary security access control plan. Security must be considered a critical component of the daily operations and the event planning process may require Crowd Control measures are well, depending on the nature of the event. The success of any facility operations can, in part be attributed to the detailed process of developing a professional, yet simple and effective plan that can be followed by staff and guests alike. Among the goals of the security plan will be the overall safety of guests, residents and staff, as well as neighbors, the efficient movement of guests off public streets and into the property in a safe manner, direction and control of guest vehicle arrival to mitigate traffic congestion, controlled and safe movement of guests within the facility and controlled and safe egress of guests exiting the facility. Currently, the security plan is in the preliminary phase and will be updated and finalized after current construction is completed and a complete and thorough site survey can be accomplished. To best revise, further develop and initiate the security plan, viewing of the facility in its final form will present a better understanding of layout and flow that cannot be established fully by just a review of the floor plans and during the current construction phase. Upon completion of the construction phase I will again meet with you to review any changes to the facility and will then finalize and prepare the security plan and begin training and implementation of both the in-house hotel, bar / restaurant and meeting and event space staffs.

538 West 25th *32--3 7 )-4 +12/# )-4 +12/ &%%%& 7 !3-0$" '&'-625-(&(& 7

!.,5" 212-594-2008

Mr. Michael Overington

Ms. Sabrina Gleizer Ian Schrager Company Page 2

Security Personnel The selection of Security Officers who have a proactive approach in identifying / preventing issues before they develop, have excellent communications skills, are key in hiring the proper personnel to interact and be effective when dealing with members of the public, guests and staff. All members of the security staff must be registered with the New York State Division of Criminal Justice Services and possess a valid New York State Security Guard License in compliance with the New York State Security Guard Act of 1992. Prerequisites for licensing approval requires that the following courses be completed as mandated by New York State law, NYS 8 Hour Pre-Assignment, NYS 16 Hour OJT provided by a licensed training school. In order to maintain their security license each Security Officer must complete a NYS 8 Hour Annual In-Service Training course each year. Additionally, site specific training geared to the specific needs of your facility must be provided to the security staff which is to include; guest admission / egress procedures, familiarization with hotel standard operating procedures. Training in emergency response and evacuation procedures based on the facilities emergency fire and evacuation plan for the Chrystie Street Hotel should be provided by the facilities FSD. All members of the security staff should also possess FDNY F03 / 04 Fire Guard Certification to aid and assist the Hotel Fire Safety Director (FSD) in the event of a fire or other emergency. A core team of security staff should be developed and retained to allow them the ability to be to be familiar with all aspects of the facilities operations. A core team working together on a regular basis will allow them to become familiar with #!"$ %($#&)' capabilities and their ability to perform their duties in a consistent manner. Security Officer Attire All Security Officers should be attired in the same manner that will easily identify them as security staff. In a hotel environment a dark suit with a "security" tag or emblem on the left breast pocket or left jacket lapel can be utilized. The ability to allow guests, staff and members of the public to visually be able to identify Security Officers by their attire is important to create a sense of comfort and safety which comes from a visual presence of security. Uniformed attire also assist the security staff in performance of their duties when they can be easily identified as security personnel. Verification of age to allow liquor purchase / consumption All security staff responsible for verifying identification necessary to purchase / consume alcoholic beverages should be aware of the NYS laws regarding the type of identification approved to purchase / consume.

Mr. Michael Overington

Ms. Sabrina Gleizer Ian Schrager Company Page 3

New York State law (Alcoholic Beverage Control Law Section 65-b(2)(b)) specifies the types of documents that are acceptable proof of age for the purpose of purchasing alcohol in New York State. They are: a valid driver's license or non-driver identification card issued by the Commissioner of Motor Vehicles, the Federal Government, a State Government, Commonwealth, Possession or Territory of the United States or a Provincial Government of Canada; or a valid U.S. passport, or valid passport of any other country; or a valid military ID from a branch of the U.S. Military. New York City issued Identification Cards are not valid a form of age identification. The use of I.D. scanning machines are also a tool in verifying the validity of identification. While they do not confirm that the person presenting the identification is indeed the owner, it does verify the validity of the identification and assists in preventing the use of fake identification. Visual confirmation of the individual present in the identification and the photo / description should always be compared. A hard copy of the I.D Checking Guide (obtainable from the Drivers License Guide Company www.idcheckingguide.com) should be kept on site at the point of entry where identification is being check to assist in verification of legitimate identification. Communications Each member of the security staff and facility managers should be provided with a portable radio to allow them to clearly communicate general information and request assistance in an emergency. All radios should be equipped with microphone / ear pieces (surveillance rigs) so that communications between staff are kept confidential and not broadcast to those in the immediate proximity. One (1) security staff member (usually assigned to an entry or exterior post) should always be assigned to "monitor" radio communications. This staff member should have both a mobile device as well as access to a land line to have the ability to contact emergency services (911) if assistance is needed. Bartenders and Servers Each bartender and server should be trained (with the training documented) to identify patrons who are visibly becoming intoxicated, or becoming loud, obnoxious. Even if not mandated by your state, they should also be trained in basic non-confrontational methods to reduce, or to cut such people off from further drinking. Condoning the continued presence of visibly intoxicated persons, or turning them loose to drive on the streets is a likely recipe for disaster. Training for these personnel (which is available from several organizations such as TAM - Techniques for Alcohol Management, or TIPS - Training on Intervention Techniques) is available in various forms including on site as well as on line training.

Mr. Michael Overington Ms. Sabrina Gleizer Ian Schrager Company Page 4 Closed Circuit Television (CCTV) system The installation of a CCTV system is an effective manner in which to deter unwanted / criminal activity and also maintain a visual record of activities in the area of camera placement for future use. A professionally installed and maintained system providing coverage of all entrances, exits, bars, cash rooms, offices storage areas and public spaces should be installed. CCTV images should be constantly monitored and recorded. Recordings should be kept for a minimum of 30 days. The quality of the recordings should be regularly checked, ensuring that the images are clear and that the date and time stamps are accurate. Sufficient staff should be trained on the use of the CCTV system to allow it to be continually monitored during regular operations. NYPD Liaison and Communication Chrystie Street Hotel Management should partner with the 5th Precinct Community Affairs Officers to keep them aware of events taking place at the facility. This will assist in maintaining the open lines of communication necessary to conduct an event and coordinate with other events that may be taking place in the community to avoid conflicts in schedules. Access Control 6 Chrystie Street Entrances The main entrance is the large revolving door at the center facing the front garden area on Chrystie Street and will be utilized for guests accessing the bar / restaurant / upper story meeting and event spaces who will enter the lobby and will be directed to the appropriate destination (guest rooms, bar / restaurant / meeting rooms / event space). The southernmost entrance will be for residents only, which will be staffed by a residential doorman. The entrance to the north allows for access directly to the Arts Club, which is the below grade event space. Security personnel will be assigned to the primary entry points at all, bar / restaurant / meeting rooms and the event space to monitor the number of guests entering and exiting to maintain compliance with each area's occupancy totals. Should entrance to the Arts Club be delayed guests would be instructed to form a line within the interior lobby adjacent to the entry area. There will be no queuing on the sidewalk as the front garden within the property would allow for a secondary, orderly, queuing area should additional space be required. A six (6) foot wide egress path would be established and maintained in the lobby at any times so any guests or staff entering / exiting the facility will have a clearly defined and unobstructed entry / egress path.

Mr. Michael Overington

Ms. Sabrina Gleizer Ian Schrager Company Page 5

Access Control 6 Chrystie Street Entrance 6 Vehicle Traffic Control In order to assist in maintaining the unencumbered arrival and departure of vehicles dropping off and / or picking up guests when it is determined that programming will create an increase in the number of arriving vehicles (taxi, black car, limousine, etc.)the following is recommended. Assign Traffic Control Security Officer(s) staffing on Chrystie Street immediately in front of the facility to assist in the efficient movement of guests arriving and departing from their vehicles. A minimum of two (2) Traffic Control Security Officers attired with reflective safety vests (equipped with illuminated traffic control wands during evening hours), should be assigned to the location to provide direction to arriving and departing guest vehicles so they may pull to the curb to discharge and load which will greatly reduce any double parking that will impede vehicle traffic and cause unwanted noise and congestion. Additionally, it is highly recommend that the Chrystie Street Hotel apply to become a participant in the NYPD Paid Duty program which will allow them to engage off duty uniformed NYPD Officers to further assist in traffic control when required. The presence of Uniformed Paid Duty Officers will greatly assist in the movement and control of traffic and noise reduction. Staffing Levels 6 Security Personnel Security staffing levels, in addition to the 24 hour on duty security personnel assigned to standard Hotel operations, will be determined and adjusted by anticipated guest attendance amounts and various other factors unique to each venue within the facility based on its programming and hours of operation. After evaluating all such factors, security staffing levels will be determined. A minimum staffing level of two (2) Security Officers and one (1) Security Supervisor in place for all programming beyond the standard Hotel staffing to assist with guest movement and related areas listed above is recommended. Additional security staffing will be based on a seventy-five (75) guests to one (1) Event Security Officer ratio. Security Supervisors will be provided at the ratio of one (1) Security Supervisor to five (5) Security Officers on duty to provide maximum supervisory oversight and assistance when programming requires additional staffing. Community accessibility To provide immediate assistance to members of the community to answer questions and resolve any issues, a dedicated email account / phone number should be maintained to inform individuals who require information immediate access to Hotel staff.

Mr. Michael Overington Ms. Sabrina Gleizer Ian Schrager Company Page 6 An on duty member of the Hotel Management and/or Security Supervisor should always be assigned to monitor the email / calls to immediately contact and respond to any issues brought to their attention in an effort to rectify and resolve them in a timely manner. A log book of all email / calls should be maintained to include the nature of the issue, date and time received and what action was taken to resolve the issue. The log book should be reviewed on a weekly basis to determine if any entries create a pattern for any issues that can them be addressed and rectified on a permanent basis. Best Practices - NYPD Guide In 2011, the NYPD in conjunction with the New York Nightlife Association issued a document titled " Best Practices for Nightlife Establishments". This guide was developed primarily for the Nightlife Industry but does contain information and can be used as a basic guide to hardening security that can be applied to Hotels as well Another resource provided by the NYPD is its guide for " Engineering Security, Protective Design For High Risk Buildings. Although not specifically issued for Hotels, it does contain valuable information that can be used in a Hotel environment. Copies of both publications and a copy of the ID Checking Guide are attached for your review If you have any further questions or require any additional information, please do not hesitate to contact me at 347.203.0883 or by email at cgarelick@eliteinvestigation.com. Sincerely,

Chuck Garelick Vice President, Special Event Services Elite Investigations, LTD.